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March Closings Dominated by Refinancing
Friday, April 17, 2020
Declining
interest rates in March pushed the refinance share of closed loans higher again
according to information in Ellie Mae's March Origination Insight Report.
The average rate for all 30-year fixed-rate mortgages closed during the month
was the lowest since January 2013, 3.65 percent, 21 basis points lower than the
average in February. Conventional loans had the same rate and change. Similarly, the average rate for 30-year rate on FHA loans
fell to 3.76 percent from 3.87 percent and VA 30-year rates averaged 3.45
percent, down from 3.62 percent. As rates
dropped, the percentage of refinances increased, representing 55 percent of
closed loans, up from 51 percent in February and 50 percent in January. The
refinancing share of loans increased across all loan types; for FHA loans it
was up 2 points to 22 percent, the conventional share increased from 55 to 63
percent, and VA refinances accounted for 30 percent of the total, 7 points more
than in February.
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